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View Diary: We don't have a Huge Debt problem -- we have a Huge Tax Haven problem (82 comments)

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  •  Don't confuse wealth with GDP. They have (4+ / 0-)
    Recommended by:
    jamess, Sparhawk, ferg, VClib

    nothing to do with each other.

    •  please explain (2+ / 0-)


      I'm assuming that's because GDP

      is "an aggregrate of all products and services" -- excluding war-related stuff (GNP)  (if I remember my Econ course, correctly.)


      FG -- what would be the "correct benchmark" then

      to get some relative perspective on that $21 Trillion [wealth?], which is likely out of GDP circulation?


      thanks!


      What is necessary to change a person is to change his awareness of himself.
      -- Maslow ...... my list.

      by jamess on Sun Jul 29, 2012 at 11:13:15 AM PDT

      [ Parent ]

      •  gdp is a measure of change in (3+ / 0-)
        Recommended by:
        jamess, DBunn, VClib

        wealth, roughly.

      •  depends on the political definition of wealth (7+ / 0-)

        for example, to some:

        Wealth is anything useful produced by human labour from materials found in nature.
        The actual wealth of capitalists around the globe is difficult to calculate, as much is hidden from view. This is often done by slick accounting, but also through secret bank accounts, with the bank fronting investments and deals. Switzerland is historically famous for this, but over the years has been joined by other countries, most recently Abu Dhabi, who last year set up a new bank precisely for the purpose of enabling the mega rich to invest and hide their wealth. Nonetheless, we can still get some indication of their wealth by looking at individual investments. In 2007 the World Wealth Report has estimated the total wealth of rich individuals at $37.2 trillion. This is a staggering amount, and difficult to get your head around. But think of it this way: the old Wembley Stadium football ground held 100,000 people; to reach just one trillion you would need 10 million stadiums!

        Präsidentenelf-maßschach"Nous sommes un groupuscule" (-9.50; -7.03) "Ensanguining the skies...Falls the remorseful day".政治委员, 政委‽ Warning - some snark above ‽

        by annieli on Sun Jul 29, 2012 at 11:33:24 AM PDT

        [ Parent ]

      •  Wealth is a value of assets. In this case we (2+ / 0-)
        Recommended by:
        jamess, happymisanthropy

        probably should look at the value of global financial assets which is a small portion of total assets. It's estimated at around 200 trln. So 20 trln is a big chunk of it.

        http://www.mckinsey.com/...

    •  That money isn't in circulation (4+ / 0-)

      Even if you somehow magically expropriated all those funds, it would mostly just end up as inflation. It's not like the average person would get a purchasing power bump of 25% of their annual income or what have you.

      I'm not really sure if this tax haven issue is even a problem. I haven't seen any evidence that this perfectly-legal activity is nefarious at all. It may be, I don't know. It just sounds to me like a good headline grabber with not a lot of substance.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Sun Jul 29, 2012 at 11:19:39 AM PDT

      [ Parent ]

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